Options trading for spot Bitcoin ETFs could rise after a Securities and Exchange Commission approval allowed several “non-security commodities” funds to list on U.S. exchanges.
Nasdaq filed 19b-4 filings with the SEC to change listing rules that allow trading of derivatives on ETFs based on Bitcoin (BTC).
Following the proposed rule changes, the SEC acknowledged the requests and opened a 21-day window for public comment and feedback. ETF expert James Seyffart said the SEC could make a decision on these filings by the end of February; However, the verdict may be delayed until September.
The SEC typically doesn't respond so quickly to requests of this kind, Seyffart noted on X.
We will receive a decision by September 21, 2024 at the latest.
— James Seyffart (@JSeyff) January 19, 2024
Options on spot BTC ETFs could provide investors with another channel to access Bitcoin exposure. These derivatives allow traders to speculate or hedge against volatility, a market phenomenon closely linked to cryptocurrencies and other risky assets.
If approved, options would join the ranks of Bitcoin-related products that hit the market shortly after spot BTC ETFs were approved. Financial products provider Direxion has already applied for five leveraged spot Bitcoin ETFs.
The increased interest in crypto ETFs has also spread beyond US states, with regulators and institutions in Hong Kong preparing to launch similar products in the first quarter of this year. Regulators in Singapore and South Korea have warned against mock BTC funds, although authorities may have a different view.
South Korea's presidential office urged local regulators to reconsider their stance on cryptocurrencies amid growing demand for BTC-related investment vehicles.
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